Pursuant to the resolution of the Board of Directors of Champion Enterprises, Inc. (the "Company"), on , 1996, the second sentence in Section 13 of the Company's 1990 Nonqualified Stock Option Plan, entitled "Non-Assignability", is amended and restated to read as follows: "Further, no shares of Company Common Stock acquired under the Program shall be sold or otherwise transferred until the expiration of six months after purchase; provided however, that the six-month transfer restriction, or the remaining portion thereof, as applicable, shall be waived in the event that a participant's employment is terminated by the Company due to the Company's June 1996 corporate reorganization, and the participant's employment termination occurs during such six-month period." This Third Amendment to the Company's 1990 Stock Option Program is hereby executed on , 1996. CHAMPION ENTERPRISES, INC. By: Walter R. Young, Jr. Chairman, President and Chief Executive Officer